Can I retire at age 42 with 980,000?

Use the below retirement simulation to view the chances of a successful retirement.
Confused? Try the simple retirement calculator
About Your Retirement ?
Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:
Portfolio ?
% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $980,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.3%
1 years$80,927$80,207$79,503$78,817$78,147$75,524
2 years$40,063$39,317$38,594$37,893$37,213$34,597
3 years$26,443$25,694$24,973$24,278$23,609$21,081
4 years$19,635$18,888$18,174$17,491$16,838$14,418
5 years$15,551$14,808$14,104$13,435$12,800$10,494
6 years$12,829$12,092$11,398$10,744$10,128$7,939
7 years$10,886$10,155$9,472$8,833$8,237$6,163
8 years$9,429$8,705$8,033$7,410$6,833$4,873
9 years$8,296$7,579$6,919$6,312$5,755$3,906
10 years$7,391$6,680$6,032$5,441$4,903$3,164
11 years$6,650$5,947$5,310$4,735$4,217$2,583
12 years$6,034$5,338$4,713$4,153$3,654$2,122
13 years$5,513$4,824$4,211$3,667$3,187$1,752
14 years$5,066$4,385$3,783$3,255$2,793$1,453
15 years$4,680$4,006$3,416$2,903$2,460$1,208
16 years$4,342$3,675$3,097$2,599$2,174$1,008
17 years$4,044$3,385$2,818$2,335$1,927$842
18 years$3,779$3,128$2,572$2,105$1,714$705
19 years$3,543$2,899$2,355$1,902$1,528$592
20 years$3,331$2,693$2,161$1,722$1,364$497
21 years$3,139$2,509$1,988$1,563$1,221$418
22 years$2,964$2,342$1,832$1,421$1,094$351
23 years$2,806$2,190$1,692$1,294$982$296
24 years$2,660$2,052$1,565$1,181$883$249
25 years$2,527$1,926$1,449$1,078$795$210
26 years$2,403$1,810$1,344$986$716$177
27 years$2,290$1,703$1,248$902$645$149
28 years$2,184$1,605$1,160$827$582$126
29 years$2,086$1,514$1,080$758$526$106
30 years$1,995$1,430$1,006$696$475$90
31 years$1,910$1,352$938$639$430$76
32 years$1,830$1,279$875$587$389$64
33 years$1,755$1,211$817$540$352$54
34 years$1,685$1,148$763$497$318$46
35 years$1,619$1,089$713$457$288$39
36 years$1,556$1,034$667$421$261$33
37 years$1,498$982$625$388$237$28
38 years$1,442$933$585$358$215$23
39 years$1,390$887$548$330$195$20
40 years$1,340$844$514$304$177$17
41 years$1,293$803$482$281$160$14
42 years$1,248$765$452$259$145$12
43 years$1,205$729$424$239$132$10
44 years$1,164$695$398$221$120$9
45 years$1,126$663$374$204$109$7
46 years$1,089$632$351$188$99$6
47 years$1,054$603$330$174$90$5
48 years$1,020$576$310$161$81$4
49 years$988$550$291$149$74$4
50 years$957$525$274$137$67$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $980,000, adding $2,051 every year, while hoping to spend $55,494 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 68/21/11 Blend
41$980,000$980,000$980,000$980,000
42$1,082,076$1,030,136$1,014,946$1,153,001
43$1,133,402$1,021,567$989,901$1,191,825
44$1,188,104$1,010,719$962,158$1,227,427
45$1,246,467$997,420$931,566$1,264,915
46$1,308,804$981,491$897,971$1,304,464
47$1,375,458$962,741$861,209$1,346,273
48$1,446,806$940,965$821,111$1,390,557
49$1,523,258$915,951$777,496$1,437,560
50$1,605,269$887,471$730,181$1,487,550
51$1,693,334$855,285$678,969$1,540,822
52$1,787,998$819,138$623,659$1,597,707
53$1,889,859$778,760$564,036$1,658,570
54$1,999,573$733,868$499,880$1,723,814
55$2,117,862$684,161$430,959$1,793,888
56$2,245,518$629,319$357,030$1,869,287
57$2,383,412$569,006$277,841$1,950,562
58$2,532,499$502,867$193,128$2,038,321
59$2,693,832$430,525$102,616$2,133,238
60$2,868,565$351,583$6,016$2,236,059
61$3,057,971$265,623$0$2,347,610
62$3,263,445$172,199$0$2,480,198
63$3,486,525$70,846$0$2,624,937
64$3,728,900$0$0$2,782,275
65$3,992,431$0$0$2,962,489
66$4,279,161$0$0$3,176,431
67$4,591,343$0$0$3,409,416
68$4,931,452$0$0$3,663,299
69$5,302,213$0$0$3,940,120
70$5,706,627$0$0$4,242,127
71$6,147,993$0$0$4,571,793
72$6,629,947$0$0$4,931,839
73$7,156,488$0$0$5,325,262
74$7,732,020$0$0$5,755,360
75$8,361,392$0$0$6,225,767
76$9,049,942$0$0$6,740,481
77$9,803,548$0$0$7,303,906
78$10,628,684$0$0$7,920,892
79$11,532,476$0$0$8,596,777
80$12,522,774$0$0$9,337,443
81$13,608,223$0$0$10,149,367
82$14,798,344$0$0$11,039,681
83$16,103,623$0$0$12,016,242
84$17,535,610$0$0$13,087,704
85$19,107,026$0$0$14,263,598
86$20,831,884$0$0$15,554,423
87$22,725,620$0$0$16,971,744
88$24,805,237$0$0$18,528,300
89$27,089,465$0$0$20,238,127
90$29,598,938$0$0$22,116,685
91$32,356,388$0$0$24,181,005
92$35,386,855$0$0$26,449,850
93$38,717,929$0$0$28,943,893
94$42,380,004$0$0$31,685,907
95$46,406,565$0$0$34,700,984
96$50,834,504$0$0$38,016,766
97$55,704,469$0$0$41,663,711
98$61,061,244$0$0$45,675,375
99$66,954,169$0$0$50,088,731
100$73,437,610$0$0$54,944,515